Please send comments, contributions and suggested topic items to: gene@weiner-intl.com
April 2012
Electronics New England and Design & Manufacturing New England was a small but interesting show held at the Boston Exhibition and Convention center April 26-27, 2012. Its core appeared to be the BIOMED Device show held in conjunction with it.
Attendance seemed light. There were several empty or “no show” booths.
However, there were a number of interesting and pleasant surprises for those interested in PWB fabrication and assembly attendees. These included a “neighbor” that I had not yet met that represented a PWB house, a number of FPC shops including one fine-line firm from the west coast that touted 25 micron traces and spaces as well as laser drilling and micromachining, a fab shop from my home town of Plymouth Massachusetts, , Parlex from Methuen (a blast from the past), a high tech specialty chemical supplier of conducive pastes, UV curing and other compounds from New Hampshire, a growing EMS company with 100+ employees from Vermont, several chemical milling houses. a quick turn high tech fabricator from China, and The QC Group whose services include reverse engineering for maintenance, repair and redesign of “legacy” equipment.
Most to whom I spoke stated that business was OK. A few claimed record sales. When queried they stated that was due to their deep involvement in producing boards and assemblies for medical electronics. That seemed to explain the high percentage of flex shops exhibiting.
All-in-all, I found attending the show to be interesting, informative and of value.
I wonder just how valuable an NDA really is. Many companies require the acceptance of a non-disclosure agreement prior to either providing "confidential" information or before signing one on as a business or manufacturing partner, as a distributor, or as a sales representative. Lately we have seen a rash of independent reps change horses (principals) and blatantly violate the NDAs that they had signed with their prior principals by disclosing "confidential" data to their new providers of equipment or materials to sell. No, these are not foreigners. These greedy spineless culprits are Americans vying for foreign equipment! Shame on them! I hope that they will be shown the errors of their ways by ensuing legal actions and penalties.
I wonder if they excuse their behavior by stating that "everybody does it", just look at those serving us in Washington, D.C.
March 2012
It's amazing how few "breakthrough" innovations (technical or economic) actually succeed in the marketplace. The photolithographic arena has been a constant target for new product announcements. The most recent is the "wet system" by Rainbow Technology Systemsthat claims 20 micron lines and spaces with an LED exposure system.
Several attendees stated that the SEMICON China show held in Shanghai March 20-22 was the busiest in memory. There was a great dal of buzz about the newly U.S. imposed tariffs on Chinese built solar panels because the industry "got help" from the government. Chinese producers asked if Obama had forgotten about Solyndra. Although there was talk of retaliation against American solar equipment makers it is unlikely that anything will actually happen.
TheIPC/APEXshow in San Diego was moderately busy as attendees welcomed the return to this venue. The show has solidly graduated to an assembly presentation with suppliers to the bare board industry almost an afterthought. One major specialty chemical provider, with a 10 foot booth, stated that he was not introducing any new products in San Diego. He said, "What's the purpose?" He stated that he would debut them at Asian shows in the future.
IPC Chairman, Steve Puddles, said that he expected the organization's new President to be announced by the end of the month. A member of the board of directors privately mused that one of the new President's challenges would be to bring together the four islands (ruled by the VP's Dave, Dave, Kim, and Tony) that had been created and left by the previous IPC president. There was also widely expressed concern and opposition to the notion that PWB's may be dropped from the ITAR list.
I wonder if this would be a good time to redefine the IPC's mission. Perhaps one that clearly encompasses electronic packaging as a whole by an American based, global organization would be in order. There may be a WECC and some cooperation on the development and use of some standards, but I believe that the IPC's membership, and our nation itself, is truly in competition with the TPCA, CPCA, JPCA, HKPCA and their members and host nations. This rivalry is not just for leadership or dominance, but for survival in the future of the electronics industry.
MEK introduced its next generation of its spi (solder paste inspection) systems, the PowerSpector S 1, to the "Western World". It was displayed and demonstrated in the Christopher booth. The machine is built by Daiichi Jitsugyo in Japan. DJ has sold over 1,200 spi machines plus 150 of this upscale model that feeds positional data forward to pick and place systems as well as backwards to screen printers to provide a robust yield increasing system from start to finish. Its patented advanced sensor technology offers a combination of 2D + 3D measurement using multiple bandwidth lighting. It can identify solder paste slump and see beyond just the stencil apertures with capabilities well beyond traditional solder paste inspection systems.
Transtech joined Yamaha in the latter's booth to signify and present their new American distribution and service partnership. Transtech president, Chris Fussner, stated that he has already started recruiting and staffing his new American technical service and support departments.
The CPCA show in Shanghai was slow reflecting business conditions in the area. Separating it from SEMICON CHINA (held the following week to throngs of potential buyers) and moving to a new venu may have contributed to the relatively poor showing of buyers.
It was interesting to see a few "all electric buses" in the streets of Shanghai.
The number of Chinese built direct imaging machines displayed was surprising - not all of them appeared ready to meet market demands. One such system is described in our "Industry News" page.
February 2012
Is there a "new sheriff" in town?
Watch for the introduction of the new 5S SPI system from Japan at IPC/APEX. The MEK S 1 advanced solder paste inspection system is expected to raise the bar in terms of speed, clarity, measurement accuracy and interface with component placement equipment.
Can our government learn something from this?
The day after Vice President Xi JinPing of China completed his U.S. visit China's central bank announced that it will cut the nation's banks' reserve requirement ratio by 0.5% to help improve liquidity and support the economy effective February 24. This is the second such move in in just 3 months signifying the country's emphasis on supporting growth rather than fighting inflation.
Questions for the month
How will America's interconnect industry avail itself of a piece of the burgeoning MEMS business for automotive parts and controls? What will happen when the supply chain pipelines damaged by Mother Nature are replaced and refilled and orders do not rise? How much of the disk drive business will recapture the solid state usurpers? Will consumer confidence return well enough to stimulate a surge of new orders, and by so doing, recharge the capital equipment market for assembly/packaging operations? Will the IPC have a new President by show time? Will the printed electronics industry truly come of age at the IPC/APEX show, or will we go through another five years of "hype" before we see this technology move into the mainstream? Will the European community find a way to salvage Greece, Italy, and the other economically mired countries? Will any nation rise to challenge China's emerging space technology leadership?
January 2012
Half of China's 20 or so mother board makers will exit the market this year due to rising labor costs. This will leave an estimated combined shipment volume of three million motherboards available for competition to share by the main Taiwan-based vendors such as Asustek Computer and Gigabyte Technology according to sources from motherboard players. Many of the China-based vendors have turned to graphics card or other industries that are protected by customs duties. DigiTimes says that Ausustec and Gigabyte have about 60% of the current market. 
Why-Oh-Why can't we in America do as our foreign competitors do?
As part of a newly stated policy the Indian government will provide Preferential Market Access for domestically manufactured/designed electronic products including mobile devices, SIM cards with enhanced features, etc. with special emphasis on Indian products for which IPR resides in India. Its electronics market is one of the fastest growing in the world and is expected to top $400 billion by 2020.
December 2011
It’s that time again! It is time to reflect, review, comment and predict.
The last two months have been a whirlwind of activity with trips to the West Coast, Taiwan, then Germany followed by Hong Kong and China. They encompassed visiting new suppliers and three trade shows – the TPCA, Productronica and the HKPCA. Products were viewed and demonstrated. Speeches were made. Events were evaluated. History was rewritten to suit individual perspectives. Concerns were voiced. And, uncertainty expanded.
The Taiwan based companies continue to build factories in Mainland China at a clip faster than market demand would indicate. A special breakfast presentation by Dr. Nakahara of NTI provided senior managers with an insight to the current construction activities and projected capacities of Taiwan (primarily) and other PWB fabricators in Mainland China.
One electronics media mogul even had the audacity to state that most people were not concerned about the actual detailed facts of accomplishments and events. He distinguished this from the need for accuracy in technology. He seemed to be pushing readability and entertainment value mixed with some “news”. This leads one to wonder about how accurate forecasts could be with this mind set. In fact, does anyone actually review the current business/sales situation against the long range plans and forecasts of just three years ago?
Be that as it may, I continue to be a stickler for detail and in ferreting out the indisputable truth.
Regarding the trade shows, the TPCA was moderately active with little new shown; Productronica presented a number of new equipment sets and technologies with an increased interest and activity level from the last two shows; and, the HKPCA was far busier than expected with the Made in China label showing dramatic quality improvements as well as a degree of innovation, especially in direct imaging systems.
New direct printing systems based upon LEDs were evident from Munich to China. *One LED prototyping system was even developed by graduate students in Germany. Increased spi offerings and improvements could be seen at all shows.
*The UV-P series of Limata GmbH claims 2.0 mil (50um) line and space feature resolution.
Trade associations continued to promote Print Electronics as the market segment that has a huge potential as they have done for the past five years - with little to show for it so far.
The supply side of specialty chemical producers seeking an entry into the PV manufacturing business through developments in plating have been surprised by the rapid improvement in the use of silver pastes to provide thinner and cheaper coatings with reduced shadowing much more rapidly than had been expected. This, coupled with bankruptcies and other bad press has dramatically slowed the entry of the “plated solutions” for reducing PV costs.
Innovative not-in-kind final finishing “solutions” such as Semblant's plasma deposited fluorocarbons, are attempting to burst into the board fabrication supply chain to replace or reduce standard OSP and other coatings.
Test companies are trying to establish and implement roadmaps for the impending era of the 28 nanometer IC and their substrates. Did someone say 20 um pitches?
A look at big leads one to believe that supplying parts to giant operations may not make a business better or more secure. This is especially true when one realizes that FoxConn (Hon Hai) owes its suppliers more than US$5 billion, and much of this is “late”. We know that virtually every EMS company owes suppliers large sums because of the nature of their business. The majority of the costs are tied up in the BoM. But, $5 BILLION????
What does the future hold? – Assuming that there are no new Mother Nature catastrophic events that disrupt populations and manufacturing supply chains, and barring a new major Mid-East crisis, we envision the following.
A flat to down (-2% to -5%) electronic growth rate for the first 6 months of 2012 is likely. There is virtually no visibility beyond that for current participants in the interconnect supply chain (fabrication and assembly). The situation will remain unstable and unpredictable until the Euro situation is resolved, and until the American election is held and its economic situation stabilized. This will lead to a reevaluation as to where electronic products should be made. But, bear in mind that the internal China market continues to grow and absorb much of the nation's production.
There will continue to be a decline in Japan’s position as a leading electronic supplier as it follows the downward spiraling path of Europe and America. More Japanese equipment manufacturers (as well as American and European) equipment set makers will partner with companies in Taiwan and China to lower their manufacturing costs and remain competitive in the Greater China market. More members of the former dominant Japanese historic interconnect supply chain will fold their tents in the land of the rising sun. ShinEtsu Chemical, Mitsui Chemical and Toray have already been reported to have ceased copper clad laminate production in Japan.
There will continue to be an increase in China’s global (and domestic) position for automotive manufacturing, including gaining world leadership of all electric car fabrication and usage (see the photo below of an all-electric BYD produced taxi battling Shenzhen rush hour traffic. The cost of a BYD is about 60% of the Chevy Volt , and the cables do NOT melt). China Southern Grid has built recharging stations in Shenzhen for the cars and electric buses built by BYD, which has Warren E. Buffett amongst its major investors.
There will be slightly lower GNP growth than predicted in China as the cost of labor (mandated wage increases and social costs to be borne by companies) continues to drive production costs upwards. As a new “middle class” continues to emerge in metropolitan areas even as industry migrates westward. China will continue to rise as the new major (economic and military) power in the world.
And, we wonder. Who will speak for America's remaining fabs and EMS providers? The HKPCA takes care of its Southeast China members. The JPCA (and the Japanese government) looks after the interest of Japan's industry participants. The TPCA supports Taiwan's companies at home as well as in Mainland China, - and is supported by the government's ITRI/ERSO R&D operations. The KPCA and IPCA look after "their own". So does the EIPC - as best as it can. Needless to say, the CPCA favors China's activities. So we ask again, "Who looks after the Americans? How would an organization best do this? Should there be a group to speak out and act in their behalf?"
September 2011
The IPC Midwest Conference and Exhibition held in Schaumberg September 21-22 had mixed results. The technical sessions appeared to be well attended, (perhaps down just a bit from last year). It was run on just a single track rather than two simultaneous tracks.
The exhibit was a bust according to several attendees. One said that he covered it in just 15 minutes. Another said that "..it was the biggest joke going. 4 aisles of maybe 150 feet An embarrassment! He further stated that Uyemura and Chemcut were the only fab related people there and that the forthcoming SMTA in Ft. Worth will have at least twice the space and exhibitors.
August 2011
Further reflections on the IPC
It is interesting in how large the disconnect between the IPC’s officers, board of directors and staff is from so many of its working volunteer members, committee chairs, and a number of Raymond E. Pritchard Hall of Fame Members, as well as some former members of the board of directors.
I hope that the new CEO president will work towards restoring the trust, respect, and camaraderie once enjoyed by all that participated in the IPC’s events.
The board of directors should focus on restoring the credibility of the IPC.
I hope that there will be an outpouring of positive suggestions that will once again make the IPC an organization for its members. I have several and will share a few of them here.
Invite all Hall of Fame Members to all major IPC meetings and events as honored guests and moderators. Those that attend would still pay their own travel and lodging expenses. This would increase the interest and attendance.
Ensure that the wishes espoused in committee meetings are carried forward by IPC staffers attending the meetings rather than buried or cut off if they are in opposition to what the staffer wishes.
Ensure that committee memberships and participation are not blocked just for political or personal preferences of staff members.
Opinions, needs and desires of the general membership should be evaluated on a constant basis and incorporated into the organization's goals, strategies, and activities.
New assessments and visions are needed.
I would be personally willing to help and advise the new president, the executive committee, and the board if they are truly interested in restoring the spirit of the IPC that once existed.
Up close and personal
The sudden resignation of Denny McGuirk from his post at the IPC to accept a similar position of CEO and President (reported to be at nearly double the pay) at SEMI has created quite a stir. We have received many comments from around the world during the first 24 of the news release announcing the change.
I hope that McGuirk's successor and the board of directors will redirect the IPC's activities, policies, and actions of senior staff to win back the trust, loyalty, and respect of its many disaffected members.
July 2011
What’s next?
Foxconn will automate over the next three years to replace 1 million of its 1.3 million workers. .Didn’t everyone go to China to get the benefit of lower (labor) costs? Too bad America cannot recover the manufacturing business by automating in the USA. The country offers no incentive to do so. It is not preparing a sufficient number of workers to survive in a high tech manufacturing world. It has destroyed the work ethic that built this country. America’s original immigrants brought a strong work ethic and skills with them. They wanted to BE Americans and learned English as rapidly as they could. The U.S. government now has wasted its borrowing power and cannot seem to find a way to provide industry the support it needs to rebuild.
U.S. PWB fabricators and assemblers report contiued low booking levels through the month of July.
SEMI was smaller and Intersolar was bigger at Moscone. Little new was seen on the show floors. Continued complaints about the difficulty in making a profit in PV Solar was widespread amongst manufacturerrs in China as prices per kw continued their downward spiral. PV equipment suppliers continued its 5 month of negative book-to-bill ratios through May, 2011 according to VLSI and IPVEA. Applied Materials delayed the placing of a new major order for equipment that it does not itself make until after the start of its next fiscal year.
NREL and Japan’s AIST sponsored a meeting in conjunction with the Intersolar show to address PV Module quality assurance and long term reliability. 170 individuals from the research sector, module manufacturers, suppliers, test laboratories, finance and insurance, as well as system operators attended. The data presented raised significant concerns and a sense of urgency regarding the lack of standards, warranties and reality.
SEMA President, Matt Holzmann summarized the meetings stating that the current failure rates and efficiency losses reported in the meeting point out the need for universally accepted quality and module standards. Holzmann also pointed out that NIST will be posting individual reports from the conference on their web site shortly to which SEMA will have a link. In the interim, SEMA's Jaspir Bath has issued a report summarizing the key points.
A German company displayed its new LED tubes to replace fluorescent tubes. When probed as to where the company manufactured these a booth attendant admitted that they were made in China by subcontractors whose names he did not know (or would not divulge).
Trade shows: Once again, are there too many that are too small without market justification for their existance?
How does one decide which of the plethora of global and regional exhibits and conferences available one should attend? One has to first decide on his current particular buying public and the needs which hs company can fill - present and future.
Which of the competing "local" shows offer the "most bang for the buck". Which of the global shows will introduce and demonstrate the latest, greatest, technology advances? Is the technical program alone worth the expenditure of time and funds? Will any key customers or prospects be there, and if so, what will THEIR mission be? Products, technology level, customer support, training and education, marketing, manufacturiong, equipment, materials, geography, costs, return on investment, industry trends, shifts in demographics all play a role. These are some of the items that I personally consider when planning my intineries.
As a result, and partially due to the logisitics of the recently divided IPC and Assembly shows, a fuzzy focus, as well as the weakened exhibitor list for each, I have decided that in my case neither event is even worth the price of an airplane ticket to attend.
China's 12th 5-year plan (2011-2015) lists seven new industries to receive attention and support. Included are energy savings, new materials and environmental protection. These should combine to give its LED industry the boost that it needs to become a major player in the world. The U.S. needs a federal industrial support plan to compete in these new job creating arenas.
LED's provide new expanded market opportunities for the current material and equipment suppliers to both the IC and PWB industries. These include direct exposure systems, substrates, solder masks, and liquid photo resists.
Prices and profits are dropping but PV production is still moving ahead in Taiwan.
Last month, while visiting Southeast Asia, I was told that participants in the PV manufacturing industry were complaining about falling prices and the difficulty in making a profit in this "adjustment period". Prices have dropped from more than $2.00 per watt to less than $0.90 in China and the downward pressure is continuing. Margins have declined by more than 50% in some instances.
Yet, this has not prevented Taiwan producers Unitech and Neo Solar from turning on new factories. Prices in Taiwan are holding, for the moment, at about $0.75 per watt.
Taiwan is also actively soliciting investments in Japan to establish "back-up" production facilities to escape future power rationing situations similar to those imposed by the government after the March 11 earthquake and tsunami events. To date a semi-conductor equipment maker and a chemical materials supplier have made commitments for such operations. Others are looking at the U.S. but there does not seem to be any active program attempting to woo them to America.
June 2011
Are there merely clouds on the horizon, or is a major storm brewing? China's continuing energy shortage, partly caused by a reduction in output by the nation's coal fired electricity plants may result in the limiting of power to its industrial sector. If this comes to pass it will negatively affect global economies and any economic recovery in the U.S. The reduction due to increased prices of coal counters burgeoning domestic need for power by the increased demand by industry as well as greater use of consumer electronics by its populace. These combine to outrace China's drive to increase sources through solar and nuclear power generation sites.
May 2011
Seeking new markets
Taiwan-based OTC, China's leading supplier of LPI (liquid photo imageable) solder masks, has started testing its white material for LED applications in the United States. Early results indicate that the highly reflective material exhibits less "chipping" and less yellowing than competitive masks now used in "The States".
Back to the Future?
Will one of the results of the 9.0 earthquake in Japan be a return of manufacturing to the U.S.? The resultant rapid Inventory consumption and shortages of components were predicted. These continue to influence production of automotive and electronic products in Greater China, America, and elsewhere. Attendance at the NEPCON China showm in Shanghai May 11-13 waas high. However, it was primarily composed of bodies not buyers. Production orders in China have been delayed, some by Japanese customers, others due to shortages.
We have speculated that conditions are ripe for American manufacturers to reinstate some of its manufacturing base.
However, there is another possibility. Sole source manufacturing sites (i.e., northern Japan) now appear too risky - even for japanese firms. How long will it take for some of Japan's electronic manufacturers and their equipment suppliers to re-evaluate the costs of manufacturing in China? Will they consider the strength of the yen, the weakness of the dollar, the existance of strong IP protection, and the availability of a suitable infrastructure favorable enough to decide to establish manufacturing operations in the United States - even before American firms do so?
Sure beats raising the "debt ceiling" to borrow more!
From theWall Street Journal: Asia Business: BEIJING—China's trade surplus swelled dramatically in April, likely adding pressure on Beijing to allow a faster appreciation of the yuan just as U.S. and Chinese officials meet for talks focused partly on contentious issues of trade and currency. The country's trade surplus widened unexpectedly to $11.4 billion in April from a narrow $139 million in March as import growth slowed and exports powered ahead, data from the General Administration of Customs showed Tuesday. Market expectations were for a surplus of just $1 billion, according to the median forecast of 14 economists polled earlier byDow Jones Newswires.
April 2011
Executive Associate, Dr. Karl H. Dietz has completed preparation of the tutorial “HDI, Fine Line Processing” the capstone of his new suite of tutorials, and seminars for bare board and substrate fabrication. The suite is described is now being offered by Weiner International Associates to individual companies at their sites as well as to groups of companies at selected locations. Companies can purchase individual or several titles based upon their needs. The entire series is also offered at an attractive rate. Dr. Dietz can also provide custom presentations such as “Applications and Development Prospects of New Materials and Substrate Manufacture” or “Image Transfer Technologies”. Karl has conducted tutorials and seminars at major events around the world (CPCA, IPC, JPCA, PCMI, TPCA) as well as at private company meetings in in such locations as Germany, Brazil, Taiwan, China and the USA (e.g., Unimicron, KSG Leiterplatten GmbH, Microelectronica, CCTC, and Orbotech.
For further details click on "Seminars and Workshops" to your left.
February 2011
Published in Global SMT & Packaging – February 2011 (www.globalsmt.net)
A look ahead ! by Gene H. Weiner
Another decade has closed—not just another decade, but the first decade of the third millennium! Where do America’s interconnect and packaging industries stand? Are they investing on a grand scale to develop and build the next generation of products in America? Will they expand their R&D in far-away places? Who will provide the equipment, materials and specialty chemicals utilized in the manufacturing process?
Everyone knows that most production and new jobs will go where the products are developed.
I predict that during the second decade of this century the old model of distribution of Western fabrication and assembly supplies in the Far East will be nearly gone. We will still see some high-tech products designed and/or built (or partially fabricated) in the Western world make their way into China’s manufacturing machine. However, we will also see the introduction of new systems developed in China by Chinese companies spreading throughout Asia (except possibly South Korea and Japan). We will also see an increase of new products developed by the Chinese research laboratories of Western firms.
One should take note of a new “localization” policy now beginning to appear in the Middle Kingdom. Changes are also apparent in the land of the rising sun. Japan has notably often preferred to buy domestically produced Japanese products over foreign brands— and I do not mean MacDonald’s—even when inferior or more costly.
Reality, however, is in the process of forcing this paradigm to change. We see an increase in the number of joint ventures, partnerships and subcontract arrangements to build a name brand. Japanese test and production equipment and tools in China for marketing in Japan, China and around the world. Japan’s Mektron, for instance, announced that it is building a new plant in China to increase its flexible circuit manufacturing capacity. The new facility is expected to initiate operations in February 2011. Hitachi Via Mechanics is facing increased competition in laser via formation from China’s Han’s Laser Technology. The latter reportedly sold 25% of the 1,000 systems sold for this purpose in 2010.
We will also see a reversal of historic representation practices. We will see Chinese produced (and /or “finished”) competitive, quality equipment sold through distributors to the Western markets at superior (read this as cheaper) prices. This will include x-ray inspection, AOI systems, reflow equipment and even, in the near future, pick-and-place machines. We will see a major step forward in the initiation of this trend at IPC APEX in April 2011.
If you wonder about quality, note that China has just demonstrated the capability to develop a stealth fighter on its own. This business model will be the result of the shrinkage of western production levels to the point where they could not independently sustain the R&D and manufacturing required for a healthy domestic or regional industry. The cost playing field is leveling, but with a difference. Chinese companies are investing in the latest capital equipment and building facilities to move quickly in volume production of HDI and other advanced interconnects.
The 2011 IPC Technology Roadmap will show the regional differences attributed between acknowledging a technology and actually having the capability to employ it,” according to IPC director of technology transfer Dieter Bergman.
China is building infrastructure to support its pillar industries and increase the locations where high tech products can be built. It continues to build highways and major high-speed rail lines to the interior and between major cities. Looking forward, we expect China to spend $153.7 billion on R&D in 2011, up from the $141.4 billion it will spend this year, according to Battelle Memorial Institute. By comparison, Japan is expected to spend $144.1 billion next year, up from $142 billion in 2010...and the jobs follow the research!
That is scary!!!!
I wonder how much of this will go to “localization.” Remember that term from the South Koreans? In a recent agreement with the U.S., China has agreed to publish a catalog of heavy and other industrial equipment so as “not to discriminate against foreign suppliers or provide prohibited subsidies.” The catalog will obviously be used to encourage the development of machines not currently made in China. China’s new R&D budget coupled with its high rate of graduates in the physical sciences and engineering fields are sure to boost domestic efforts beyond that of mere reverse engineering to develop machines not currently made by Chinese companies. (Source: NY TimesDecember 16, 2010) Let’s look at a few seemingly unrelated facts and see how this bodes for us here in America. China’s government supports its pillar (including electronics, solar/wind energy development and implementation) industries with five-year plans. Taiwan works closely with its industry to develop new products and production processes. Japan has favorable accelerated depreciation schemes that has helped its advanced industries automate. South Korea has had a localization philosophy for its technologies. China is reported to be graduating 600,000 to a million engineers and physical scientists a year, and has about 20,000 students (most of whom will return home after graduation) attending American universities.
Major American corporations have established R&D operations in China (Intel, Cisco, Dow Chemical, etc.). Western suppliers of equipment, materials and specialty chemicals have found the shrinkage of their domestic markets (USA, Western Europe) so decimated by the shift of manufacturing locations that they have either relocated operations to China, partnered with or licensed their production to Chinese companies, or simply gone out of business. Others remain in jeopardy.
Are there some things that America’s remaining fabricators, assemblers and their supply chain participants can do to help level the current playing field a bit more? Can they buy and use the lower cost equipment produced in the Far East as those that have captured the majority of the market have done? Can they have more of their product built abroad to serve the local markets there at a competitive price? Should they?
Update
A number of he items presented below are now reaching commercialization levels (at mid-2011).
The presentation, “Opportunities Presented by New Technologies and their Commercialization”, included would be such items as nano solder, nano spaces, print electronics, a major development in fabrication process equipment, and real time 3-D testing.
Co-authors of the paper were Executive Associates of Weiner International Associates Dr. Alan Rae, Dr. Jim Hickman and Marc Chason. Contributions to the presentation were also made by Lionel Fullwood of Wong's Kong King Distribution and Orbotech.